MUMBAI: Sajjan Jindal-led JSW Energy plans to raise around USD 750 million from international bond sale to fund expansion plans as well as to repay some of its existing debt of over Rs 10,050 crore.
The company has also set a target of achieving 10,000 mw of installed capacity by 2020, a quarter of which will be contributed by renewable energy sources.
JSW Energy has sought shareholders' approval for the fund raising plan and said the proposed USD 750 million of long-term debt will be raised by selling non-convertible foreign currency denominated bonds or masala bonds, the company said in the annual report.
Chairman Sajjan Jindal in his address to the shareholders said as a growth-focused company, it has a strategic vision to build a portfolio of 10,000 mw through both organic and inorganic means.
"We aim to further diversify our generation portfolio by expanding the footprint into the renewable energy segment, including solar and wind, apart from evaluating growth inorganic opportunities in these segments," he said.
The company, sitting on a debt of over Rs 10,050 crore, will continue to look for value-accretive acquisitions while balancing the risk-return dynamics, he added.
Resolution of stressed power assets is expected to result in consolidation in the sector, providing attractive growth opportunities to well-capitalised companies like JSW Energy, he said.
He said the company will also continue to focus on growth opportunities in the core power sector as well as related areas, as it has scrapped its plans to enter the electric vehicles manufacturing business.
"During the first half of FY18, we had announced our plan to enter electric vehicle manufacturing, and associated businesses of energy storage systems and charging stations.
After careful evaluation of these business segments, we found higher than anticipated uncertainties and hence, decided to discontinue these ventures and focus on growth opportunities in the power sector and related areas," Jindal said.
The company also plans to increase its long-term PPA proportion to 85 percent from the current levels.
"On the existing business, we retain our focus on increasing the long-term PPA proportion steadily, thereby further de-risking the business," Jindal added without disclosing the present proportion.
JSW Energy closed FY19 with a net income of Rs 695 crore on a revenue of Rs 9,506 crore and generated 22,088 million units. The company stock closed with a loss of at over 1.3 percent at Rs 69.70 against 0.36 percent.